LEGAL PRINCIPLE: LABOUR LAW — Master and Servant Relationship — Termination Without Reasons — Employer’s Prerogative
PRINCIPLE STATEMENT
In a master and servant employment, the master is under no obligation to give reasons for terminating the appointment; the master may terminate at any time and for any reason or for none, but must pay damages for breach of contract if termination is not warranted.
RATIO DECIDENDI (SOURCE)
Per Katsina-Alu, JSC, in Olarewaju v. Afribank Nigeria Plc (2001) NLC-1091996(SC) at p. 7; Paras B–D.
"In master and servant class of employment, the master is under no obligation to give reasons for terminating the appointment of his servant. The master has the power to terminate the contract with his servant at any time and for any reason or for none. However, if the master does terminate the contract in a manner not warranted or provided by the contract, he must pay damages for breach of contract."
EXPLANATION / SCOPE
In a master and servant relationship, the employer has the prerogative to terminate without assigning reasons. The employer may terminate at any time, for any reason, or for no reason. However, if the termination breaches the contract (e.g., without required notice), the employer must pay damages. The remedy is damages, not reinstatement. The principle reflects the common law position. The employee is not entitled to reasons for termination. The employer’s discretion is wide, but contractual terms must be respected. The employee cannot challenge the termination on the ground that no reason was given. The rule applies to private employment not governed by statute. The employee’s only recourse for wrongful termination is damages.